The Iowa Farm Bureau is rolling out health insurance plans for its members that will be allowed to turn away sick people or charge them more.
Obamacare had blocked these kinds of arrangements from taking place, but Iowa lawmakers passed a law last spring declaring Obamacare-noncompliant plans not to be health insurance, a move that frees the sale of the plans from state and federal rules.
The pre-existing condition exemption was first reported in the Des Moines Register, which noted that it wasn't clear which conditions would cause someone to be turned away or charged more. The plans are expected to cover mental health, maternity care, and medicines.
They are offered by Wellmark Blue Cross and Blue Shield and will be sold by insurance agents. The paperwork that potential customers fill out will ask them whether they have been diagnosed or treated within the last five years for 16 pre-existing conditions, including autoimmune diseases, mental health difficulties, drug or alcohol addiction, heart disease, and diabetes. Applicants will need to share their medical records and the types of prescriptions they have taken.
The plans were unveiled Wednesday and will go on sale Nov. 1.
[Also read: Endangered House Republicans offer resolution to protect people with pre-existing conditions]
The association health plans are intended to offer people a way out of Obamacare's higher premiums, especially when they don't receive subsidies that help curb the cost of coverage to them. People making more than roughly $48,000 a year for an individual and $92,000 for a family of four do not qualify for the aid because of how the law is written.
The plans are different than association health plans allowed under federal rules by the Trump administration, which allow individual workers to band together to buy coverage in a similar way as a large employer would. An association health plan that rolled out in Nebraska recently did not do away with the protections for pre-existing conditions.